Elbit Systems Acquires Through a Tender Offer the Balance of Tadiran Communications' Shares

HAIFA, Israel, April 26 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (Nasdaq: ESLT) (the "Company") announced today the successful completion of its previously announced Cash Tender Offer for balance of the ordinary shares of Tadiran Communications Ltd. (TASE: TDCM) ("Tadiran") (the "Offer").

The Offer expired at 2:00 p.m., Israel time, on April 26, 2007, with 6,690,801 Tadiran shares tendered and accepted for purchase under the terms of the Offer for a price of 210 New Israeli Shekels per share. The total amount paid for the tendered shares was approximately $350 million, based on current exchange rates. These shares, which represent approximately 51.16% of the total outstanding ordinary shares of Tadiran (approximately 52.85% of the voting rights), satisfy the legally required majority under the terms of the Offer.

As a result, and in accordance with the provisions of Israeli law relating to tender offers, the Company will acquire under the terms of the Offer, the remaining shares of Tadiran from those Tadiran shareholders who did not provide an acceptance notice relating to the Offer. Accordingly, Tadiran will become a private, wholly-owned subsidiary of the Company.

Joseph Ackerman, President and CEO of Elbit Systems Ltd., commented: "The acquisition of Tadiran Communication is in line with our long-term strategy of growth through mergers and acquisitions of complementary companies with high synergistic value." Mr. Ackerman further noted that "Tadiran Communications is an excellent company with advanced technology products that have proven operational success with numerous defense forces worldwide, including the Israel Defense Forces. Tadiran's areas of business complement those of Elbit Systems and represent a significant force multiplier, further leveraging the Elbit Systems Group's depth and versatility and enabling us to offer our customers even more comprehensive turn-key solutions based on the Group's collective strengths."

About Elbit Systems Ltd.

Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Elbit Systems Group, which includes the company and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaissance ("C4ISR"), advanced electro-optic and space technologies, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and equipment. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications.

STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.

    Contacts:

    Company Contact:

    Joseph Gaspar, Corporate VP & CFO
    Dalia Rosen, Director of Corporate Communications
    Elbit Systems Ltd
    Tel: +972-4-8316663
    Fax: +972-4-8316944
    E-mail: gspr@elbit.co.il
    daliarosen@elbit.co.il

    IR Contact:

    Ehud Helft / Kenny Green
    G.K. Investor Relations
    Tel: +1-866-704-6710
    Fax: +972-3-607-4711
    E-mail: info@gkir.com